The final draft technical standards on prudential matters that businesses must adhere to under the Markets in Crypto Assets (MiCA) Act were released by the European Banking Authority (EBA) on Thursday. MiCA, a comprehensive set of unique regulations for the cryptocurrency industry, was approved last year. The law includes guidelines for stablecoin issuers and cryptocurrency businesses. The rules set forth by the EBA define the parameters for stress test programs, the reserve asset liquidity requirements, the recovery plan that issuers must create, and other details.
“Issuers of asset referenced tokens are required to conduct stress testing based on plausible financial stress scenarios, and competent authorities will be able to increase the amount of own funds requirements of an issuer of asset-referenced tokens having regard to the risk outlook and stress testing results,” the recently published package read.
The European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), two additional organizations belonging to the bloc of 27 states, worked closely with the development of the proposed technical standards.